TranslateMany business owners have realized that to stay competitive in today’s market, good data is needed to make good decisions. Gut instinct is no longer enough. Today’s technology allows you to see exactly what is happening in your business at any point in time. Using this information to help you make decisions allows your business to be more responsive to changes in the market and the business climate. You can identify opportunities, perhaps identify future trends and generate more revenue. Using data to help with your business decisions is a way to gain a competitive advantage.
If you are using data to assist you with some of the important decisions for your business, you’ll want to first, consider the goals of your business. What areas of your business could benefit most from this process?
It’s important to have the right data to assist you in making the decision. Are you looking for new markets? You’ll want data that describes your current market and then data that tells you where other markets with the same attributes are located. Are you evaluating the operation of your business? In this case you may need data that analyzes the efficiency of all the processes that make up your business.
Next, consider the quality of that information. You might want to look at the data that is already available to you. From industry organizations or magazines or maybe local Economic Development Organizations. Online statistical reports are also available. You may even have inhouse reports about your market or your business. Determine when this data was compiled. Is it recent or old news? What changes have taken place in the industry or in your business since it was reported? Have your Business objectives changed? Has your operation changed? If so, you may have to begin a new search for the data you need to make an informed decision.
Finally, can you interpret the data you have? Is it laid out in a format you are familiar with and can easily analyze? Data can be presented in different ways. Descriptive information gives you the facts and just the facts. Inferential information presents the facts plus an interpretation of what those facts indicate as referred to your project. Predictive information also gives you the facts and an inference of their meaning, but in addition will present advice on further action based on the inference. The presentation that works best for you depends on how familiar you are with the information and how it pertains to the decision you are about to make.
Netflix and Amazon are two examples of businesses that used data-driven decision making to expand their original business model. Netflix started as a mail-based DVD sharing business but grew to internet streaming. Amazon started as an online bookstore but with good data to drive their decisions, they have blossomed into an online hub for almost any product you may want or need. The successful rebranding of these businesses was made based on data they had about their market and their industry trends. Make this type of decision-making work for your business.
Let me know your thoughts at eddavis@scorevolunteer.org
Sharpen the saw; Thursday, March 14th, North Port workshop, Promoting Your Business. Wednesday, March 20th, Punta Gorda workshop, Take the Mystery Out of Social Marketing. Visit portcharlotte.score.org for more information and to register.
For more information on starting, promoting and growing your business, or to request a mentor from SCORE Port Charlotte go to www.portcharlotte.score.org. Volunteers provide confidential one on one business advice to meet the needs of both start-up and existing businesses at no cost. Follow us on Twitter; @charlottecscore
